Can computers imagine?

After a year of formally pursuing artificial intelligence and probably 2 more years of pursuit due to curiosity I went back to square one and am pondering upon more philosophical questions like:what is intelligence? I vaguely remember my first "Fundamentals of Machine Intelligence" class in which we discussed it as "mimicking humans". I had ofcourse underestimated the discussion then and was more keen on learning about advanced Neural networks and SVMs, a great folly indeed. But is "mimicking humans" all there is to intelligence? Surely there must be more. I looked around trying to find answer. A lot of introductory AI texts start